Where a defendant was convicted on four counts of failure to collect or pay over employment taxes in violation of 26 U.S.C. §7202 and one count of mail fraud under 18 U.S.C. §1341, the defendant’s convictions should not be reversed despite an instructional error on good faith.
“After a jury trial, Defendant-Appellant Lilian Giang was convicted on four counts of failure to collect or pay over employment taxes in violation of 26 U.S.C. §7202 and one count of mail fraud under 18 U.S.C. §1341. Her convictions stem from the operations of Able Temp Agency (‘Able’), a staffing business she owned and managed. At trial, the government’s witnesses testified that Able paid workers in unreported cash and submitted false payroll information to both the Internal Revenue Service and Able’s workers’ compensation insurer, resulting in lower tax bills and insurance premiums….
This category refers to crimes committed by employees or insiders against their own organizations. It is often the most damaging because the perpetrator has authorized access to systems.
- Asset Misappropriation: The most common form, involving the theft of company resources. This ranges from simple “skimming” (taking cash before it’s recorded) to complex schemes involving the theft of inventory or intellectual property.
- Payroll Fraud: Employees may create “ghost employees” on the system, falsify their own timesheets to claim unworked overtime, or divert salary payments to their own accounts.
- Financial Statement Fraud: Management deliberately misrepresents the company’s financial health by inflating revenue or hiding liabilities to attract investors or meet performance bonuses.